Blackdome encouraged by recent drill results

Exploration drilling designed to outline new ore reserves on Blackdome Mining Corp.’s (TSE) high grade gold property in British Columbia has returned encouraging results, the company reports. A major exploration drilling campaign has been under way for several months on the Blackdome mine property with results to date described as “moderately encouraging” by the company.

Several intercepts of ore grade quartz vein and stockworks have been obtained from four separate vein systems on the property.

The most recent set of results, from holes drilled since September of last year, are as follows:

Width Gold Silver Vein Hole (ft) (oz/t) (oz/t) Giant 590 8.0 0.37 0.67

598 9.9 0.19 0.39

599 14.9 0.18 0.35

601 9.5 0.80 1.04

3.7 0.56 0.71

602 2.9 1.05 1.36 Red Bird605 5.6 0.61 0.36

606 3.3 0.25 0.21

622 4.3 0.70 2.55 No 17 616 3.4 0.17 0.31

617 12.4 0.46 0.99 No 2 UG20 4.3 0.14 8.43

UG24 3.3 0.48 0.34

UG25 6.9 0.33 6.26

UG26 2.6 0.21 0.68

President Scott Drever said that the Giant and Red Bird veins are “looking very good for the development of potential new ore shoots.”

Exploration drilling will continue on the property for another couple of months. “We’ll keep up a fairly good rate of drilling during the next two months, then we’ll step back and look at the results to see if we have developed any new reserves,” Drever said.

To date about 90,000 ft of exploration drilling have been completed, with another 10,000 ft planned under the current program. The company is hoping to prove up enough new ore shoots to replace the roughly 80,000 tons of ore mined out during 1988.

At year-end 1987, Blackdome reported mine proven and probable reserves of 245,615 grading 0.74 oz gold and 2.15 oz silver per ton.